One major cause of business failure is undercapitalization. At the end of the day we don’t want you to apply to join our Academy and then realize you lack the capital to build your Amazon business.
In terms of set up costs to launch a product it’s very broad because there's so many different types of products to choose from. There's currently over 200 million products listed on Amazon. Some products are big, some are small, some are heavy, and some are light. Some rely heavily on branding (so logo development is a wise investment) whereas some are commodities so logos are less important. We have students selling products that range for $3-$50 per unit to make, so there is no right answer to this question.
Ideally you would want to start with at least $10K (USD) or more for your first inventory order. Most of that would be required in the 2nd half of your first year when you've gone through the entire Academy, done your product research/tracking, formed a RI Mastermind, built a strong relationship with your selected supplier and sourced adequate product samples for testing. By being well capitalized from the outset this will help ensure that you can fund your Amazon business.
You would then aim to turn your first inventory order over at a profit during your second year. It may be possible to start with less capital for inventory e.g $5K(USD) as an absolute bare minimum. However you will be buying much smaller quantities of stock. That could mean paying more for them and lowering your margins...and obviously your rate of growth will be reduced also.
In most cases you will need to be selling your products for 3x - 5x whatever you are buying them for to retain a net margin of 30% or more.
In terms of other costs, there are also many one-off establishment costs you will need to budget for including product samples, design, packaging, inventory, freight, photography, promotions, Amazon costs, various general costs and advisor fees associated with starting any business. We recommend you seek professional advice to fully account for these prior to applying.
Amazon typically charges 15% commission on the actual sale price of the item and fulfillment fees, which are irrespective of price. Where your product isn't selling for an extended period you may also be subject to Amazon storage fees. A breakdown of Amazon fees can be found on their website: